HENRICO COUNTY, Va. — Henrico County's ambitious Green City project, estimated at $2.3 billion, could be in jeopardy due to developers’ failure to meet financial obligations.
The Green City project, proposed for the former Best Products property off Interstate 95, aimed to feature a 17,000-seat arena alongside office and retail spaces, and two hotels.
A letter from the county, dated March 3, indicated the Green City Development Corporation had not made a final payment exceeding $5.2 million for a portion of the project, which was due last Friday.
Richmond BizSense first reported this latest development.
The letter reads: "GCDC failed to make the final payment of the purchase price for the Property in the amount of $5,222,400 on or before February 28, 2025, as required by Section 2 of the Purchase Agreement. If the default is not cured within 10 days of receipt of this notice, the EDA (Economic Development Authority) will exercise the rights available to it under the Purchase Agreement, including, without limitation, the right to exercise the Repurchase Option."
Watch: Who is responsible to paying for Henrico's 'Green City' project
Last July, county officials expressed concerns that developers had not secured financing, submitted necessary plans, or initiated any construction.
"As a result, GCP (GreenCity Partners) and GCDC are significantly behind the development schedule incorporated into the development agreement, and the property remains the same as it was at the time of the rezoning. Understandably, confidence has begun to wane in the ability of GCP and GCDC to begin (let alone complete) the project," the July letter said.
A follow-up notice in December reiterated these issues, again urging developers to take immediate action to fulfill their commitments under the development agreement.
"For example, the Master Plan showed construction of the area beginning in 2023 and completing in 2025. To data, however, none of these developments have begun," the December letter to developers read.
"Instead of conformance with the Development Schedule, Developers have continually delayed the schedule without any justification basis for such delays and without undertaking good faith activities to advance the design, development, and construction of the project," it continued.
Henrico County Manager John Vithoulkas provided a statement to CBS 6 regarding the situation.
"We included extensive provisions to protect the interests of Henrico County and our taxpayers when we entered into agreements with Green City Partners and Green City Development Corporation. Simply put, the GreenCity developers have not performed to the terms of the agreements," the statement read. "We believe it’s time to move forward and return the Best Products property to the county, as stipulated in the agreements. As a county, we remain bullish on the concept of a large, mixed-use development at this extraordinary location and believe it is perfectly suited to a privately funded arena for sporting events, concerts and other entertainment."
Watch: Henrico leaders announce plans for 17,000-seat arena, new 'Green City'
CBS 6 attempted to contact the developers but has not received a response.
People who live in that part of Henrico County shared mixed sentiments about the project.
While some believe it could bolster the local economy, others expressed concerns about potential traffic issues.
Many residents are left wondering if the development will commence as planned, as the arena was initially expected to be completed by next year.
CBS 6 is committed to sharing community voices on this important topic. Email your thoughts to the CBS 6 Newsroom.
📲: CONNECT WITH US
Blue Sky| Facebook| Instagram| X| Threads| TikTok| YouTube
This story was initially reported by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
